Bank of England Governor Mervyn King has announced plans to help kick-start the UK economy by buying toxic losing bets on last Saturday's Grand National.

The race was won by shock 100/1 outsider Mon Mome, leaving millions of punters out of pocket. But don't throw those losing betting slips away just yet.

"We will buy all losing bets on the Grand National at face value, flooding the market with money and boosting spending," said King.

"The plan is to keep them all in a safe place, a large box for example. If the race is ever run again in the future, in some kind of wierd Dr Who like reversal of time, then I will attempt to alter the course of history armed with this magic screwdriver I've got. The Bank will then collect all winning bets on the new winner, so the taxpayer gets his money back in the long-run. Cushtie," said King.

The cost of shipping commodities such as iron and wheat around the world is almost certain to increase due to demand from China, India and emerging economies and thanks to port congestion in major exporting countries.

Analysts say buoyant consumer demand in Asia is helping outweigh the impact of a slowing U.S. economy, record oil prices and falling stock markets and will force freight rates higher.The Baltic Exchange's chief sea freight index, which gauges the strength of major trade routes for coal, iron ore, cement and commodities such as grains and sugar, plunged at the start of the year fuelling fears of a U.S.-led global slowdown.

The index has had a roller-coaster ride over the last six months, hitting an all-time high of more than 11,000 points in November but then collapsing to under 6,000 in January.But the index has bounced back since then thanks to soaring demand from the Asia, especially China.

From a low of 5,615 points at the end of January, the index has jumped to more than 7,000 points.

"At the time we thought the sharp fall in the Baltic (indices) was nothing to do with underlying demand at all," said Helen Henton, head of commodity research at Standard Chartered Bank."A lot of it was driven by iron ore price negotiations between Brazil and China and cancellation of 30 large cargoes that knocked the market in a very short-term way," she said.

Henton said that now negotiations had concluded, the expectation was for freight prices to push higher again on pent-up demand."A lot of demand is still coming out of the Far East, from China and India, and other emerging economies ... there's also growing congestion at ports which is tying up the world fleet," said one dry trade analyst at Clarkson ship consultancy who declined to be identified.

He said iron ore and coal demand were the principal drivers of the recovery. Echoing Henton's view, he said the conclusion of some annual iron ore price negotiations between Brazilian miners and steel mills in South Korea and Japan had also spurred fresh buying.

According to the International Iron and Steel Institute world crude steel output reached 1.34 billion tonnes in 2007 -- the highest in history. It was the fifth consecutive year that output grew by more than 7 percent.

China's coal export ban announced in late January will add further support to prices, experts say, as major importers Japan, South Korea and Taiwan switch to suppliers further afield, increasing tonne-mile demand.

Some analysts say the ban could lift freight markets significantly as the three import 40 percent of global seaborne steam coal.

Port congestion, a major driver of sea freight prices, has also risen, principally in major mineral exporting countries like Brazil, Australia and South Africa, analysts say.

Brokers at J.E.Hyde consultancy have pinned some of the rebound on fresh purchases from China as traders returned from New Year celebrations.

FUTURE DEMAND

Dry trade experts at Simpson, Spence & Young said strong soybean demand from China through 2008 was likely to stoke freight costs further. July soy futures prices on the Chicago Board of Trade have struck a record on anticipated Chinese demand after severe weather destroyed 40 percent of China's rapeseed crop.

Recent government figures showed that China imported 3.44 million tonnes of soy in January, the highest since June 2006.But despite robust demand, nagging concerns over the U.S. economy and even slower global growth persist.

A Reuters poll of top economists on Tuesday predicted major world economies are set to slow another notch from the slower pace predicted in January, with the likelihood of a U.S. recession now even higher. OECD chief Angel Gurria on Wednesday predicted that global economic growth was going to be lower than cited just a few months ago.That could spell trouble for future raw materials trade, knocking sea freight prices lower again.

But analysts have so far brushed aside similar pull-backs on short-term freight market volatility."All other indicators seem to show commodities demand still being very strong...growth is slowing but it is still firm because of China and Asian demand generally," Henton said.

The great new game for all the family. Ideal Christmas present. Move around the board buying greenfield sites, building compound mills, reporting your competition to the authorities and issuing winding up orders. Hours of fun watching your children cry after the council close their mills down.

Sample Chance cards now include:

* DEFRA HAVE IT IN FOR YOU, MISS TWELVE GOES* SELL YOUR MILL IN THE MIDDLE OF TOWN FOR HOUSING, COLLECT £20M, ADVANCE TO SHEPSHED* GET OUT OF A UFAS AUDIT FREE* YOU HAVE BEEN TAKEN OVER BY ABN, COLLECT £5M AND RETIRE FROM GAME* FIDDLE YOUR EXPENSES, COLLECT £5K* BRIBE THE GIRL IN ACCOUNTS TO BOOK ALL THE PROFITABLE SALES TO YOU, GET £50K BONUSES* GET CAUGHT IN BED WITH THE GIRL FROM ACCOUNTS, PAY EX WIFE £500K* GET CAUGHT IN BED WITH THE GIRL FROM ACCOUNTS, GET PEARL NECKLACE FROM HUSBAND* COVER HALF OF TOWN IN DUST, KILLING AN ASTHMATIC, PAY £200K COMPO* TORCH YOUR OWN MILL, COLLECT £2.2M INSURANCE MONEY* SKIM 2 TONNES OFF THE TOP OF EVERY LOAD IN YOUR STORE, GO TO JAIL* GET SHOVED AROUND BY THE BIG BOYS, HIRE EXPENSIVE ARBITRATOR, GIVE AWAY £200K* DELIVER WHEATFEED MEAL AGAINST PRAIRIE MEAL CONTRACT, PAY £150K HUSH MONEY* DELIBERATELY MIS-CALIBRATE WEIGHBRIDGE, BUY VILLA IN MALDIVES* GET A JOB WITH CARGILL, TALK LOUDLY IN A PHONY AMERICAN ACCENT FOR THE REST OF THE GAME

About Me

Worked in agriculture for over 30 years as a shipper, merchant, trader & broker, but still hasn't got the faintest idea what he's talking about.
Likes beer apparently, so why not do the decent thing an hit the donate button you tight bastard?
He can also provide content for your website like market reports and commodity prices. And if you haven't got a website he can design one for you. In short, the man's a bloody genius.

Disclaimer

All comments on this website are the sole opinion of the author, and are not capable of nor intended to constitute professional advice. Neither can Nogger give any guarantee for the accuracy of any of the information or data contained within this site.

The guy is clearly deranged and you should almost certainly ignore everything that he says.